What should be the price per share for company

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Assume a corporation is expecting the following cash flows in the future: $-4 million in year 1, $9 million in year 2, $19 million in year 3. After year 3, the cash flows are expected to grow at a rate of 5% forever. The discount rate is 8%, the firm has debt totaling $42 million, and 11 million shares outstanding. What should be the price per share for this company?

Reference no: EM131947684

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